Economic Growth Chapter 13, Section 4

Measuring Growth (pg. 364, Figure 13.9) Real GDP = economic growth in the short term Real GDP per capita =

Historical Record What does figure 13.9 (pg. 364) show us? –When does real GDP per capita become negative? Another way to examine growth is a growth triangle (pg. 365, Figure 13.10)

Importance of Economic Growth (p ) Raises the standard of living, eases the burden of government, and helps solve domestic problems Standard of living- Government Spending- Domestic Problems- Helping Other Nations- Global Role Model-

Factors Influencing Economic Growth Effect quantity and quality of production and efficient use of resources Land Capital Labor Entrepreneurs-

Productivity and Growth Productivity = efficient use of productive inputs to create goods and services Labor productivity-